Chapter 9, Problem 9.8EYCT

(a), (1)

To determine

Intangible Assets: These are the long-term assets having no physical existence. However, the benefits provided by these assets are used by the company for a long period of time. Example: Patent, Trademark, Goodwill, Copyrights.

the name of the company that owns both brands TB and PH.

(b)

To determine

To explain: the reporting of these brands on the appropriate company’s balance sheet.